While US market are closed today for the Fourth of July holiday, oil was trading at $72.24 a barrel in Europe after losing 81 cents on Friday. Investors remain uncommitted following last week’s worse-than-expected employment news showing the US economy created fewer jobs in June than in March and April. This, together with a slowing Chinese economy, has some traders heading for the exists with their profits.
“Obviously, speculative investors are taking their profits because of worries regarding an economic slowdown in the USA and China,” said a report from Commerzbank in Frankfurt.
A report from ANZ bank confirms the opinion:
“The balance of crude oil price risks appears skewed towards the downside” because of “negative demand shocks from a sluggish economic recovery,” ANZ bank said in a report.
ANZ said it expects crude to trade between $65 a barrel and $75 this month.
Source: Associated Press
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